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Kyrgyzaltyn could have to pay $1 million to StoneX

Kyrgyzaltyn JSC may be forced to pay StoneX $1 million, because this is one of the options for the early cancellation of the LBMA’s decision to suspend the company from the Good Delivery List. The Chairman of the Mining and Metallurgical Trade Union Eldar Tadzhibaev told journalists.

According to him, it follows from the official reports of Kumtor Gold Company CJSC and Kyrgyzaltyn OJSC that it is precisely because of the claim of StoneX that the products of the domestic enterprise cannot be sold based on gold fixing. At the same time, Kyrgyzaltyn does not recognize the claims of the American company and justifies the disruption of gold supplies by force majeure in connection with the suspension of the license for the export of gold.

«In any case, the gold produced at Kumtor will have to be sold, since significant financial resources are needed to ensure continuous production activity and timely payment of wages. It is necessary to regularly purchase fuels and lubricants, spare parts, equipment, chemicals, electricity, food, various services and etc. Shutdown of Kumtor is unacceptable. Its activities are of great social and economic importance for the country. According to the National Statistical Committee of the Kyrgyz Republic, in 2020, Kumtor’s contribution to GDP was 12.5 percent, and its share in industrial production was more than 23 percent. These are huge receipts to the republican and local budgets, as well as to the budget of the Social Fund of the Kyrgyz Republic. This, among other things, is the payment of wages to state employees, pensions and benefits to the respective recipients,» Eldar Tadzhibaev said.

«The company employs over 4,000 people, more than 70 percent of whom took loans. Taking into account the multiplier effect of Kumtor’s activities, taking into account contractors, suppliers, service companies, thanks to the work of the enterprise, more than 10,000 people directly support their families. In this connection, we once again call on the Cabinet of Ministers of the Kyrgyz Republic, Kyrgyzaltyn JSC and the management of KGK CJSC to take all the necessary measures to ensure a continuous stable production process at Kumtor,» he concluded.